COMP NEWS – Despite many businesses increasing overall compensation for employees, the unemployment rate still remains much higher than pre-pandemic levels.
U.S. employment increased more than expected in October as the headwind from the surge in COVID-19 infections over the summer subsided, offering more evidence that economic activity was regaining momentum early in the fourth quarter.
Employment rates are on the rise, but overall unemployment numbers still remain high.
But the brightening outlook was somewhat clouded by millions of unemployed Americans who remained at home even as companies are boosting wages, generous government-funded jobless benefits have ended and schools have reopened for in-person learning. The labor force is down 3 million from its pre-pandemic level.
Most industries are creating new job positions that will need to be filled. Last month alone, over 200,000 jobs have been created across industries.
Leisure and hospitality businesses led the broad-based increase in hiring last month, with 164,000 jobs created. Payrolls also rose in professional and business services, transportation and warehousing, healthcare, wholesale trade, financial activities as well as mining sectors. Manufacturing added 60,000 jobs, with 28,000 of the positions at motor vehicle manufacturers, an encouraging sign for an industry that has been hobbled by a global semiconductor shortage. Construction payrolls increased by 44,000 jobs.
Despite the increase in jobs in these industries, government education positions fell by 65,000.
But state and local government education shed 65,000 jobs. The government said pandemic-related staffing fluctuations in education have distorted normal seasonal patterns, making the changes in employment in the sector challenging to interpret. Shortages of bus drivers and other support staff have been well documented. Overall government payrolls fell by 73,000 jobs.
Overall, unemployment rates are still high, but the unemployment rate is beginning to trend down.
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